GENESIS RESOURCES LIMITED — Capital/Financing Update 2016

Dec 14, 2016

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GENESIS RESOURCES LIMITED

(ASX: GES)

ASX and Media Release

15 December 2016

JORC 2012 Compliant Mineral Resource completed for 2.07 Million Ounce Gold Equivalent at the Plavica Project, Macedonia

Genesis Resources Limited ( Genesis or the Company ) is pleased to announce a JORC 2012 compliant Mineral Resource for the Plavica Project in Macedonia. The total Indicated and Inferred Mineral Resources as at November 2016 are estimated at 65.8 million tonnes (MT) at 0.70 grams per tonne of gold (g/t Au) containing 1.46 million ounces of gold. Contained within this total resource is 31.7 MT @ 0.77 g/t Au for 781,000 Au ounces of oxide and transitional (Pox) material from both the Plavica and Maricanski Rid deposits (Table 1).

The resource estimate follows a series of reverse circulation and diamond drilling campaigns completed to define mineralisation along both the main Plavica ridge and Maricanski Rid. Mineralisation is continuous for over 1km at Plavica and 700m at Maricanski Rid and has been drilled to depths of over 300m. The Resource at Plavica remains open along strike to the east and at Maricanski Rid to the east and west.

Resource estimations were also completed for silver (11.1 million ounces) and copper (107 kT contained copper) within the Primary unoxidized material resulting in a gold equivalent grade of 1.2 g/t Au within this primary material.

The Resource represents a major milestone for the Company and work has begun on completing a PreFeasibility Study. Golder Associates have been contracted to complete this work.

Genesis Resources Limited | Plavica Project Resource | December 2016

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Summary:

mary:
Deposit	Material	Classification	Cut-off g/t Au	Million Tonnes	Au grade g/t	Aueq grade g/t	Au koz	Au eq koz
Plavica	Ox & Pox	Inf & Ind	0.5 & 0.6	15.8	0.9	0.9	444	444
Plavica	Fresh	Inf & Ind	0.5 & 1.0	34.1	0.6	1.2	680	1293
Maricanski Rid	Oxide	Inf & Ind	0.4	15.9	0.7	0.7	337	337
Total	Ox, Pox & Fresh	Inf & Ind	Various	65.8	0.7	1.0	1,461	2,074

Detail:

Deposit	Material	Classification	Cut-off g/t Au	Million Tonnes	Au grade g/t	Au koz
Plavica	Oxide	Indicated	0.5	4.4	1	147
Plavica	Oxide	Inferred	0.5	6.4	0.7	154
Plavica	Oxide	Subtotal	0.5	10.9	0.9	301
Plavica	Pox	Indicated	0.6	0.9	1	29
Plavica	Pox	Inferred	0.6	4	0.9	114
Plavica	Pox	Subtotal	0.6	4.9	0.9	143
Plavica	Ox & Pox	TOTAL	0.5 & 0.6	15.8	0.9	444

Deposit	Material	Classification	Cut-off (g/t Aueq)	Million Tonnes	Au grade g/t	Cu grade %	Ag grade g/t	Aueq grade g/t	Au koz	Cu (kt)	**Ag koz **	Au eq koz
Plavica	Fresh Above 120m	Indicated	0.5	1.9	0.9	0.1	2.2	1.1	55	2	133	64
Plavica	Fresh Above 120m	Inferred	0.5	16.3	0.5	0.3	8.9	0.9	251	42	4,679	495
Plavica	Fresh Above 120m	Subtotal	0.5	18.2	0.5	0.2	8.2	1	306	43	4,812	559
Plavica	Fresh Below 120m	Indicated	1	0.1	1.1	0.1	2	1.3	2	0	4	2
Plavica	Fresh Below 120m	Inferred	1	15.9	0.7	0.4	12.4	1.4	372	64	6,317	731
Plavica	Fresh Below 120m	Subtotal	1	15.9	0.7	0.4	12.3	1.4	374	64	6,321	733
Plavica	Fresh	TOTAL		34.1	0.6	0.3	10.2	1.2	680	107	11,133	1,293

Deposit	Material	Classification	Cut-off g/t Au	Million Tonnes	Au grade g/t	Au koz
Maricanski Rid	Oxide	Indicated	0.4	0.9	0.8	19
Maricanski Rid	Oxide	Inferred	0.4	15	0.7	318
Maricanski Rid	Oxide	Total	0.4	15.9	0.7	337

Table 1: November 2016 Mineral Resource Estimate

Notes:   - Mineral resources are not mineral reserves and do not have a demonstrated economic viability. All figures have been
rounded to

• reflect the relative accuracy of the estimates. Differences may occur due to rounding errors.

• Gold Equivalent (Aueq) grade is based on prices of USD $1200/oz Au, $18/oz Ag and $5000/t Cu

• Gold Equivalent (Aueq) grade is based on an assumption of equal metallurgical recoveries for gold, silver and copper. Preliminary Metallurgical test work confirms this.

Genesis Resources Limited | Plavica Project Resource | December 2016

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- PLAVICA PROJECT – MINERAL RESOURCE

The updated Mineral Resource estimate has been prepared by an independent consultant, Ravensgate International Pty Ltd. The Resource is based on 146 Reverse Circulation (RC) and 148 Diamond Drill (DD) holes containing a total of 63,523 assays and drilled during the period from 1998 – August 2016. 84 drill holes drilled in the 1970s by the Yugoslav Government were excluded from the dataset due to quality issues. 98% of the samples used for estimation were drilled by Genesis, and the other drill samples used compare well to the surrounding Genesis holes.

All diamond drill holes completed by Genesis were sampled by cutting the core longitudinally in half using diamond core saws. Half core samples were placed in numbered sample bags and submitted to the laboratory for analysis. Sampling was typically taken at 1m intervals.

Reverse circulation drill holes carried out by Genesis were typically sampled every metre using either a multi-tier riffle or cone splitter to obtain a ~3 kg sub sample prior to submission to the laboratory for assaying.

Analysis has been performed by commercial laboratories with samples taken in 2011 sent to ALS Romania whilst the recent 2012-2016 drilling has been sent to SGS Ankara or SGS Bor. The samples sent to SGS follow standard SGS crushing and pulverization procedures and a conventional fire assay procedure with either atomic absorption or gravimetric finish on a 30 gram sub-sample.

Mineralised domains were modelled in 3D using Leapfrog software at Plavica at a nominal 0.2 g/t Au cut-off (Figure 1) and at Maricanski Rid using Vulcan software at 0.25 g/t Au cut off (Figure 2). Structural orientations and lithology were interpreted on 50m sections and used to guide the domain interpretation and grade estimation to create the resource model.

The grade estimation method used was Ordinary Kriging (OK) of values lying within the validated wireframes (solids) with only the assays constrained within the individual wireframes used for the interpolation. No estimation of grades outside of the wireframes was undertaken. A model block size of 25m (x), 25m (y) and 10m (z), was selected based on drill spacing and composite length. A density value was interpolated for each of these model blocks based on 9,539 density measurements of wax coated core samples collected over both deposits.

Search parameters were selected to achieve the most reliable grade estimate possible on all of the blocks to fill the wireframe solids. The variography and search ellipsoids compare well to the underlying geological interpretation of a steep east west trending structure which controls mineralisation. A grade and distance threshold method has been used for the treatment of high grades. The oxidation boundary was interpreted from the geological sections and logs and used to create surfaces which were then used to code oxidation state into the block model.

The Indicated and Inferred Resource estimates have been classified based on data density, data quality, confidence in the geological interpretation and confidence in the estimation. At Plavica approximately half the oxide resource is in the Indicated category whilst at Maricanski Rid, where the drilling density is much less, less than 10% falls within the Indicated category. Silver and copper grades have also been estimated in separate domains from the gold domain. Cut-off grades for these domains were 10 g/t for silver and 0.2 % for copper.

Genesis Resources Limited | Plavica Project Resource | December 2016

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At Plavica the mineral resources are reported at a cut-off grade of 0.5 g/t Au for oxide and 0.6 g/t Au for transitional (POX) material. Primary material is reported at a 0.5 g/t Au equivalent cutoff for material above 120m and a 1.0 g/t Au equivalent for material below this depth to allow for reasonable prospects for economic extraction. At Maricanski Rid a cut-off of 0.4 g/t Au was used for oxide material.

Metallurgical test-work completed on oxide, transitional and fresh mineralisation has concluded that there is a high likelihood that it will be economically feasible to process both tested mineralisation types contained within the Plavica and Maricanski Rid deposits.

Additional JORC 2012 information is set out in Table 1 in the Appendix.

The entire resource report can be viewed by clicking on the following link: - - http://genesisresourcesltd.com.au/attachments/investor information/resource - reports/201612%20 %20Ravensgate%20Plavica%20Report.pdf

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Figure 1  Plan of drill hole locations, and mineralised domains at Plavica. Yellow domain is gold, Orange domain
is copperand Green domain is silver.

Genesis Resources Limited | Plavica Project Resource | December 2016

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Figure 2 Plan of drill hole locations, and mineralised Gold domain at Maricanski Rid.

For more information please visit the Company website at: www.genesisresourcesltd.com.au

Information in this report that relates to exploration activity and results was compiled under the guidance of James Patterson who is a Member of the Australasian Institute of Geoscientists (AIG) and is an employee of Genesis. Mr Patterson has sufficient experience relevant to the styles of mineralisation and to the activities which are being reported to qualify as a Competent Person as defined by the JORC Code. The Resources delineated in this report were completed by independent consultant David Reid of Perth based company Ravensgate International Pty Ltd. Mr Reid has sufficient experience relevant to the styles of mineralisation and to the activities which are being reported to qualify as a Competent Person as defined by the JORC Code. Mr Reid is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM). Mr Patterson and Mr Reid both consent to the release of the information compiled in this report in the form and context in which it appears.

Genesis Resources Limited | Plavica Project Resource | December 2016

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APPENDIX: JORC TABLE 1.

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Part	Criteria	Comment
1-1	Sampling Techniques	Samples used in the resource estimation were obtained from RC and DD drill holes. A total of 24 DD and 38 RC drill holes were used in the Maricanski Rid resource estimate. A total of 112 DD and 122 RC drill holes were used in the Plavica resource estimate. Holes were generally drilled towards grid north with dips of approximately 60° to optimally intersect the steeply dipping east-west striking mineralised zones of high sulphidation style epithermal mineralisation. Some holes at Maricanski Rid were drilled to the south as well as some vertically due to lack of access for drill pads and the sub-horizontal nature of the mineralisation there.
		Diamond core was drilled to obtain high quality samples that were logged for lithological, structural, geotechnical, density and other attributes. Sampling of diamond core was also on one meter intervals with the core being cut in half using a diamond core saw.
		Samples are assumed to be representative of the mineralised zone.
	Drilling Techniques	The core drill rigs used 3m drill rods. Diamond drilling has employed a 63.5mm diameter HQ ‘standard tube’ core drilling methods. RC drilling has been completed with 6m rods using a 4.5” or 121 mm face sampling hammer bit. Orientations are completed every run (maximum 3m) using a spear technique. Diamond drill core is typically orientated where possible though often the core is highly fractured and cannot be reliably orientated using standard techniques.
1-2	Drill Sample Recovery	Diamond drill core is assessed by measuring the recovered drill length against the actual drilled. Diamond drill recovery is generally above 95%. Recoveries drop to less than this in minor (1-2m) zones of vuggy silica and clay. RC sample weights have been taken on all primary samples. Theoretical sample weights are then compared to the actual sample to identify any intervals that have had poor recovery. Average recoveries for RC holes are >95% but can vary significantly between holes.
		Some larger diameter PQ core drilling in shallow oxide zone undertaken to improve core recovery.
		No detailed analysis of grade versus recovery has been undertaken at this stage however comparison of RC against DD gold results indicates a slight positive bias for RC drilling. This may indicate some loss of fines when using DD methods.
1-3	Logging	All drill holes have been logged in full and record standard criteria such as lithology, alteration, mineralisation, structures, weathering and oxidation.

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Part	Criteria	Comment
		Geotechnical data such as drill recovery, RQD, hardness, fracture type and frequency are also recorded for input into future scoping level mining studies. All logging is entered into Excel spreadsheet templates or onto hard copy forms which are transferred to Excel spreadsheets. These spreadsheets are then routinely imported into Micromine software.
		All diamond core is photographed in a wet and dry state.
		Holes are geologically logged for their entire length.
1-4	Sub-Sampling Techniques and Sample Preparation	All DD holes completed by the Genesis were sampled by cutting the core longitudinally in half using diamond saws. Sampling of diamond core was also undertaken on 1m intervals. RC Samples were riffle split every 1m at the rig and the sub-samples of approximately 3kg sent to SGS Ankara or SGS Bor.
		The majority of the RC samples were riffle split. Some RC samples were collected using a cone splitter mounted beneath the cyclone.
		Sub-samples of ~3kg were sent to the laboratory for assaying. Analysis has been performed by commercial laboratories with samples sent to SGS Ankara or SGS Bor. The samples sent to SGS follow standard SGS crushing and pulverization procedures and a conventional fire assay procedure with either atomic absorption or gravimetric finish on a 30 gram sub-sample. Fire Assay is considered a total recovery method for gold.
		QC samples have been inserted into the routine sample stream to monitor sample quality as per industry best practice. These include standards, blanks and duplicates at regular (25m) intervals.
		Quarter core duplicates are submitted every 50m. RC duplicates are submitted at 25m intervals.
		Sample sizes are reasonable for fine gold analysis. No coarse gold has been observed through photo-micrographic studies.
1-5	Quality of Assay Data and Laboratory Tests	Analysis has been performed by commercial laboratories with samples sent to SGS Ankara or SGS Bor. The samples sent to SGS follow standard SGS crushing and pulverization procedures and a conventional fire assay procedure with either atomic absorption or gravimetric finish on a 30 gram sub-sample. Fire Assay is considered a total recovery method for gold. Gold and a suite of other elements were analysed.
		No geophysical analysis methods were used.
		Industry standard QC sample insertion procedures have been adopted. QC insertion rates are: - every 50m is a field duplicate - every 25m is a Standard - every 50m is a coarse blank The QA/QC results indicate acceptable levels of precision and accuracy.
1-6	Verification of Sampling and Assaying	Samples are currently submitted to an umpire laboratory and are comparable with the originals.
		Thirteen twinned drill holes demonstrate that there is good agreement

Genesis Resources Limited | Plavica Project Resource | December 2016

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Part	Criteria	Comment
		between RC and DD holes sampling results.
		Data is imported into Micromine.
		There is no adjustment of assay data.
1-7	Location of Data Points	The drill hole locations are picked up by local survey contractors using a DGPS (Differential Global Positioning System). A local survey control station near the project is utilised by the local surveying contractor. Down hole surveys have been undertaken using a Reflex EZ-Trac tool. Down hole surveys were conducted at intervals of 25m.
		All surveys are taken using the Gauss–Krüger (GK) coordinate system which has been the system used for survey by Genesis at Plavica since 2012.
		Topography is based on surveyed drill collars, tracks, ridges and valleys where available. In areas with new survey gridded elevations are used.
1-8	Data Spacing and Distribution	The nominal drill hole spacing is 50m (easting) x 50m (northing). Samples are collected at one meter lengths and are not composited in the field / core-shed.
		Drill spacing has allowed reasonable geological interpretation to be completed. Variogram ranges are generally greater than the drill spacing allowing reasonable estimation of the mineralisation grade continuity for mining study purposes.
		Samples are collected at one metre lengths and are not composited in the field / core-shed. Two metre compositing was undertaken during the grade estimation process.
1-9	Orientation of Data in Relation to Geological Structure	Holes were generally drilled towards grid north with dips of approximately 45 to 60° to optimally intersect the steeply dipping east-west striking mineralised zones.
		No orientation based sampling bias has been identified in the recent data. Early vertical drill holes were excluded from the resource estimation process due to data quality concerns and their orientation subparallel to mineralised structures.
1-10	Sample Security	Chain of Custody has been managed by Genesis Staff. All drilling assay samples were collected from the field by Genesis personnel. Core samples were stored at a secure sample processing and storage facility where they were subsequently processed and prepared for pickup. This facility has CCTV. Assay samples were collected by appropriately qualified staff at the laboratories.
1-11	Audits or Reviews	An audit of drilling and sampling procedures was undertaken by Golder Associates in 2012 at the commencement of that years drilling program. A number of priority based recommendations were provided to Genesis. All priority 1 recommendations were implemented and many of the lower priority actions have also been completed. The implementation of these recommendations has provided increased confidence in the quality of the data used in the resource estimate. An independent consultancy, Ravensgate, have reviewed all exploration data and interpretations utilised in the resource modelling work.

Genesis Resources Limited | Plavica Project Resource | December 2016

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Part	Criteria	Comment
2-1	Mineral Tenement and Land Tenure Status	A 30 year Exploitation Licence and Concession Agreement were granted to Silgen Resources International Ltd, an incorporated joint venture entity owned by Genesis and its Macedonian-based joint venture partner RIK Sileks AD Kratovo. Silgen is 62% owned by Genesis. The JV Company has been formally granted the Licence for a term of 30 years. The area covered by the Licence totals 16.85 km2.
		Genesis has pledged its 62% share of Silgen to completing a Feasibility Study to mine Plavica and has agreed to spend USD $7.5M for this work.
2-2	Exploration Done by Other Parties	At Plavica historic small scale mining was undertaken during Roman times and by Ottoman Turks. Two adits were completed by British Mines Selection in the 1930’s targeting enargite veins. Previous exploration has been conducted by the Yugoslav Government, Cyprus Amax, Rio Tinto and European Minerals.
2-3	Geology	Both Plavica and Maricanski Rid host oxide gold mineralization in vuggy silica and clay zones within silica caps of a high sulphidation epithermal style setting. Alunite alteration is common. Beneath this oxide zone is a series of steeply dipping east striking structures comprising enargite-pyrite veins and vuggy silica zones. These zones are rich in Au, Cu, Ag and occasionally Pb and Zn. The prospects lie within the Western Tethyan Arc and are Tertiary in age.
2-4	Drill Hole Information	All drill hole collars with location, elevation, depth, dip and azimuth are tabulated in the body of the report.
2-5	Data Aggregation Methods	Exploration results have been previously reported for the Plavica and Maricanski Rid deposits. These are superseded by resource statements for these deposits.
		Exploration results are not reported for Plavica and Maricanski Rid deposits.
2-6	Relationship Between Mineralisation Widths and Intercept Lengths	Exploration results are not reported for Plavica and Maricanski Rid deposits.
		Core orientation and sectional interpretation suggest the mineralised zones are sub-vertical.
		Holes are drilled on 45 to 65° angles to intersect the zones at the highest angle possible but also taking into account the steep topography of the area and the difficulty of locating drill pads. As a result the mineralised zones are intersected at an oblique angle and therefore down hole lengths are not true widths.
2-7	Diagrams	A plan and section are included.
2-8	Balanced Reporting	Exploration results are not reported for Plavica and Maricanski Rid deposits.

Genesis Resources Limited | Plavica Project Resource | December 2016

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Part	Criteria	Comment
2-9	Other Substantive Exploration Data	Bulk density measurements were conducted on selected intervals of core. Dry core is wax coated prior to bulk density measurement by water immersion methods. SGS conducted metallurgical test work on two 35kg samples of Plavica ore. The conclusion was that froth flotation followed by cyanide leaching gave the best recovery of 83.5% Au for the sulphide ore. For the oxide ore between 94 - 97.9% Au recovery was achieved using cyanide leaching. No testing of partially oxidised ore was conducted. Golder Associates conducted a mining scoping level study on the Plavica project in January 2013. Pit optimisation, geotechnical, pit design, sequencing and costs. They concluded that the geological and resource model were not of sufficient confidence for to meet bankability requirements. Genesis has conducted considerable additional drilling, and geological interpretation since this study and have added the Maricanski Rid deposit to the resource inventory. These Golder studies give a good indication for the viability of the project but will require updating with the most recent drilling and geological model. Golder Associates conducted a desk top scoping study on the environmental and social impact of the project including a site visit in August 2012. The purpose of the study was to identify environmental and social impact issues with the proposed development of the project and to propose the terms of reference for a ESIA.
2-10	Further Work	Further step-out drilling is currently in progress. A scoping level Mining study is planned to commence in late 2016.
		Future drill planning requirements will depend on the results of mining study work.

Genesis Resources Limited | Plavica Project Resource | December 2016

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Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in Section 1, and where relevant in Section 2, also apply to this section.)

Part	Criteria	Comment
3-1	Database Integrity	Drill data is stored and managed using Micromine software. This system does not manage data security or record editing history. Security is managed by access limited to senior geological staff only. Genesis staff check digital data against hard copy following data entry.
		Data validated during importing into Vulcan and Leapfrog software. Checks include: missing intervals, overlapping intervals, duplicate sample locations and data intervals beyond end of hole.
3-2	Site Visits	The Competent Person for the estimate, David Reid of Ravensgate, visited Plavica and Maricanski Rid for three days in June 2016. RC and DD drilling, logging, sampling and bulk density measurements were observed. All work was being conducted according to written procedures and to a high standard.
		Site visit has been conducted by CP.
3-3	Geological Interpretation	Lithology and alteration zone interpretation appear to show reasonable consistency between drill holes and between section lines, leading to good confidence in the lithology model. The level of weathering is highly variable and the weathering model is of lower local confidence.
		Geological information used included drill hole logging and surface outcrop mapping. It has been assumed that the logging is consistent between the various phases of drilling. Mineralisation domains are based on sample assays.
		Alternative geological interpretations were not assessed.
		Alteration intensity (silica) was used to constrain the higher grade zones of gold mineralisation. Orientation of the structures and lithology orientation was used to guide the mineralised domain boundaries. These boundaries were used to constrain the grade estimation within selected zones.
		Gold mineralisation appears to be strongly associated with the zones of silica alteration. Weathering has resulted in a depletion of Cu and to a lesser extent Ag near the surface and in areas of deeper oxidation. High grade gold mineralisation was constrained by a restricted search during estimation as drill spacing was not sufficient to model the continuity at higher grade thresholds.
3-4	Dimensions	The mineralisation has been intersected at a maximum depth of 800m. The area extent of mineralisation is: Plavica 3,500mE x 1,000mN x 600mRL and open at depth Maricanski Rid 800mE x 300mN x 300mRL and open to the east and west and depth
3-5	Estimation and Modelling Techniques	Vulcan software was used to estimate grade into 25x25x10m sized blocks using ordinary kriging. The spatial influence of high grade outliers in the composite dataset were limited by the use of a search of 25x25x25m. A minimum of 10 and maximum of 40 composites were used in each

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Part	Criteria	Comment
		estimation. Separate domains were used to estimate the grades of Au Cu and Ag independently. The higher Au grade silica altered domain was estimated separately otherwise lithology type were combined for estimation. ISBD estimation was not constrained to lithology or mineralisation domains. Weathering was used to domain the estimation for Maricanski Rid but due to the uncertainty in these contacts and the transitional nature of the DISBD measurements across weathering interpretation they were treated as soft boundaries for the Plavica deposit.
		Comparison was made to previous resource estimates but there was substantially more drilling conducted since the previous estimate which makes comparison inconclusive. No production data was available. Mine workings from Roman times and from 1930s adits is unlikely to have removed significant volumes.
		Metallurgical test work has confirmed good gold recovery for oxidised material (94 - 97.9%). Recovery of Au, Cu and Ag from sulphide ore is lower at 83.5% - using floatation to produce concentrate.
		Grade of deleterious elements was not conducted.
		Estimation block size of 25x25x10m is approximately half the nominal drill spacing of 50x50m over the majority of the deposits. Sample search of 300x200x200m radius was used to ensure the majority of blocks in the model are estimated.
		Estimation block size is larger than the expected SMU. The estimation is highly smoothed and unlikely to provide a good prediction of recovered tonnage and grade at higher cut off grades.
		No correlation is assumed between variables and they have been estimated independently.
		Weathering domains were used to estimate DISBD values. Lithology and mineralisation domains were used to control the Au, Cu and Ag estimates.
		No grade cutting was applied. A restricted search was applied to outlier composites (typically at the 99thpercentile).
		Block grades were visually compared to drill hole grades. Global average grades for each estimation domain were reasonably consistent between de- clustered composite grade and block estimate mean.
3-6	Moisture	Tonnage is reported on a dry basis.
3-7	Cut-off Parameters	Resources have been reported from within the mineralised domains using a cut-off expected to produce an economic mining product. Cut-off grades applied were: 0.5g/t Au cut off was used for oxide ore at Plavica and 0.4 g/t Au cut off for oxide ore at Maricanski Rid. 0.5g/t Aueq was used for near surface sulphide ore (0-120m below surface) and 1.0g/t Aueq cut off used for deeper sulphide ore (>120m below surface)
3-8	Mining Factors or Assumptions	Open pit mining using excavator and truck was assumed for near surface (0-120m). A low strip ratio and potential for heap leaching of the oxide resource should provide low mining and processing costs. Underground mining via adits in the hillside is expected to be required to access the

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Part	Criteria	Comment
		deeper ore.
3-9	Metallurgical Factors or Assumptions	Preliminary metallurgical test work on the two main identified mineralisation types, oxide and fresh (sulphide) showed that Au, Cu and Ag can be extracted from sulphide material via froth flotation concentrate. Oxide mineralisation had different metallurgical characteristics with gold recovery up to 97.9% achieved using direct cyanide leaching.
3-10	Environmental Factors or Assumptions	Scoping study work has identified potential overburden and tailings storage locations on site and has defined the terms of reference for a ESIA.
3-11	Bulk Density	Excellent bulk density data has been acquired throughout both deposits. Rather than assuming a bulk density, it has been possible to interpolate a value into the resource model blocks from the drill data. Bulk density DISBD was estimated from 9,427 measurements. Measurements were made on 10-20cm lengths of core.
		Wax coating of core samples prior to water displacement method density measurements was used to account for small scale porosity and voids.
		Bulk density estimates assumed the primary control was the intensity of weathering. Oxidised, partially oxidised and fresh material DISBD were estimated separately.
3-12	Classification	The Mineral Resource classification has taken into account, data density and quality criteria as well as confidence in geological interpretation and continuity which has been guided by estimation parameters.
		Only recent data with best practice QAQC information was used in the resource estimate. Older data which lacked quality control information was excluded from consideration.
		The Mineral Resource estimate appropriately reflects the view of the Competent Person.
3-13	Audits or Reviews.	Golder associates conducted an audit of data collection practices in 2012. Ravensgate, have reviewed all exploration data and interpretations utilised in the resource modelling work. Ravensgate conducted internal peer review on the resource report.
3-14	Discussion of Relative Accuracy / Confidence	Grade variability of samples is reasonable (low CV) for the use of ordinary kriging grade estimation. Low nugget values and drill spacing which exceeds the observed variogram ranges suggesting the grade estimation should provide and reasonable estimate for the deposit.
		The statement relates to the global estimates of tonnes and grade. Local estimate at the reporting cut-off is reasonable but will be poor at higher cut off grade.
		No production data is available.

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